Chapter 9:

Elements of Product
Planning for Goods
and Services

For use only with Perreault and McCarthy texts.

© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Chapter 9 Objectives
When you finish this chapter, you should
1. Understand what “Product”
really means.
2. Know the key differences
between goods and services.
3. Know the differences among
the various consumer and
business product classes.
4. Understand how the product
classes can help a marketing
manager plan marketing
strategies.
9-2
5. Understand what branding is
and how to use it in strategy
planning.
6. Understand the importance of
packaging in strategy
planning.
7. Understand the role of
warranties in strategy
planning
8. Understand the important new
terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Defining “Product”
Target Market

Product Place Promotion Price

Product
Brand Package Warranty
Idea

Physical
good/service Type of Brand:
Features Individual or Protection,
Quality level family Promotion, None, full, or
Accessories Manufacturer or or both limited
Installation dealer
Instructions
Product line
Exhibit 9-1
For use only with Perreault and McCarthy texts.
9-3 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Consumer Product Classes
Convenience

Shopping
Consumer
Product
Classes
Specialty

Unsought

For use only with Perreault and McCarthy texts.

9-4 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Business Products

Installations

Professional
Accessories
Services
Business
Product
Classes
MRO Raw
Supplies Materials

Component
Parts and
Materials

For use only with Perreault and McCarthy texts.

9-5 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Branding
Focus:
Rejection Change Position

Focus:
Nonrecognition Increase Awareness

Focus:
Recognition Continue Education

Focus :
Preference Maintain Availability

Focus : Develop High

Insistence Brand Equity
For use only with Perreault and McCarthy texts.
9-6 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 What Kind of Brand to Use?

Family ? Individual
Brand Brand

? ?
Brand
? Choices ?
Manufacturer Dealer
? ?
Generic
For use only with Perreault and McCarthy texts.
9-7 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 The Strategic Importance of Packaging

Convenient packages
are easier to use,
making purchase
decisions easier for
the customer as well.

For use only with Perreault and McCarthy texts.

9-8 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Using Warranties to Improve the
Marketing Mix

A warranty says the

Warranty company stands behind
the product. Consumers
often feel more
comfortable with
products they know
come with assurances.

For use only with Perreault and McCarthy texts.

9-9 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
 Key Terms
Product Expense Item Brand Equity
Quality Capital Item Lanham Act
Service Installations Family Brand
Product Assortment Accessories Licensed Brand
Product Line Raw Materials Individual Brands
Individual Product Farm Products Generic Products
Consumer Products Natural Products Manufacturer Brand
Business Products Components Private/Dealer Brands
Convenience Products Supplies Battle of the Brands
Staples Professional Services Packaging
Impulse Products Branding UPC
Emergency Products Brand Name Federal Fair Packaging
Shopping Products Trademark and Labeling Act
Homogeneous Service Mark Warranty
Heterogeneous Brand Familiarity Magnuson-Moss Act
Specialty Products Rejection
Unsought Products Nonrecognition
New Unsought Recognition
Regularly Unsought Preference
Derived Demand Insistence
For use only with Perreault and McCarthy texts.
9-10 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill